- Joined
- Apr 11, 2016
My boss recommended that I should park my money in mutual funds (I live in the USA). Is this still a safe vehicle for mid-term investment or not if the market might correct sooner than later?
Current issues with the market - Any ideas on avoiding the end?
- Thread starter mindlessobserver
- Start date
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Comfyman
kiwifarms.net
- Joined
- Sep 6, 2019
If you don't want to pick your own individual stocks just buy a broad ETF. There is zero reason to buy more expensive mutual funds that just trail or underperform the market in the long run.
- Joined
- Apr 11, 2016
I’m retarded and I’m just trying to park my meager fortune into something besides a savings account that has a 0.02% interest rate. Even CDs don’t have a worthwhile payout nowadays. I’m simply hesitant about ETFs or mutual funds simply because they’re tied to the market, and I’m aware the line doesn’t always go up
Hypothetically I’m just investing payouts from an investment that returns a dividend/profit in perpetuity; I would just rather turn an extra $60k/yr into an extra >$60k/yr.
Comfyman
kiwifarms.net
- Joined
- Sep 6, 2019
If you are worried about developments in the market or risks I'd say just buy a broad worldwide ETF like VT. But invest for the long term and regularly. Put as much of your monthly paycheck as you can into it, no matter if the market currently goes up or down, and you'll average out your buy in price. On average ETFs return 6-10% per year depending on which one. An ETF that covers the whole world like VT might give you a slightly lower return but it is pretty unlikely that all businesses in the world will just seize to exist. But as I said, invest with a very long time horizon and maybe think about never spending the money you put into it. An upcoming recession can be a huge risk if you need to sell everything again in two years. But it can be a great opportunity to get even cheaper and cheaper shares if you have time and think in the long term.
- Joined
- Jul 18, 2017
Jerome Powell says he may push the AZ-5 button.
- Joined
- Oct 4, 2020
Alright I'm still on the sideline. With Powell going apeshit, I guess the best course of action would be to stay out of this shit until june ?
- Joined
- Jul 18, 2017
Their flailing right now. They don't know what to do. Nobody does.
- Joined
- Jan 9, 2020
Nothing overly bad is going to happen.
A recession. Some lose jobs, inflation calms down, we move forward.
A few companies go belly up.
Life goes on. Im not sure the Fed has the balls for Interest Rate hikes and as well quantitive tightening, but we will see.
A recession. Some lose jobs, inflation calms down, we move forward.
A few companies go belly up.
Life goes on. Im not sure the Fed has the balls for Interest Rate hikes and as well quantitive tightening, but we will see.
Raoul_Duke
kiwifarms.net
- Joined
- Jan 26, 2021
HAHAHAHAHAHAHAHA HAHAHAHAHAHAHAHA HAHAHAHAHAHAHAHAHAHAHA
Oh, I'm sorry, you're being serious? Let me laugh some more.
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
- Joined
- Jan 20, 2019
I'll put this here. I have stated I owe nothing to nobody. I'll survive the Down turn.
All I see is the same shit coming from ignorant people that don't see what I see. We share the same internet. We can get the same information on what is going on. So why are my net profits going up year, after year and those from Generation fail are in decline?
Because they are so conditioned to spend money on short term gains as well as trying to make a fast buck they effectively have no real financial foundation to live on. I see this all of the time when I talk to my lease holders knowing they can not afford another new car putting them in continual debt. Or the people in Wally world again all in nice fancy cars and knowing they are sure as hell not making that much money to buy that Lexus/BMW/Honda/etc. They put themselves into the door or revolving debt.
This failure mindset is also cross generational. This year I've seen my neighbors taking reverse mortgages, moving out of state, or going into bankruptcy. Some are in my Age Group (Gen Jones) but most of them are in Gen X.
Or...
Being too damned frugal that they are incredibly cheap. The type of cheapness that can kill you. I have friends who became diabetic because they were too cheap to go and see the doctor and change their "Cheetoes'" lifestyle. They just cut their lives short.
In 2006, that family was going to be a "millionaire" household. They were interviewed by some early FIRE movement people. When the great recession hit, they of course went backwards, but did not lose their household. But the ideals of how they were saving money was wrong and so was the FIRE movement in it's approach. So they penny pinched harder without making any investment and in the process damaged their bodies.
Being Penny Pinched, Pound Foolish is the other extreme of being a failure as well. They lost years of financial potential just because they were cheap. The eventually became a "millionaire" by the rising equality of their home and how they penny pinched, but by the time they reached their milestone I was already way, way above them. I use the financial opportunities offered and took advantage of the economic situations given to me.
This is the mindset of being poor. The Rich Plays to Win. The poor plays not to lose.
My "friends" have to work until they reach 65 or longer because of them being so damned cheap. I've left the workforce 16 years ago and made money ever since.
I wanted to share the other side of the coin of extreme frugalness. This form of Greed. The stereo type of a "Portuguese Cheapskate". And in my life I have seen people that I know and knew/ who are Portuguese and/or people fit that stereo type just fucking lose their lives. I was a workaholic but god damn I knew people that did 100+ hours a week so they can make more in their retirement only to drop dead as early as 46 years of age.
Yea after seeing people around me dropping like flies I just said "fuck it all... just not worth it anymore".
There is the Greed of Entitlement. For the Rich and for the poor.
There is the Greed of short gain profit which leaves you a bad foundation to start with.
And then there is the Greed of Frugality. When you are so damned cheap that you put your life and others in danger.
I see all of that above and again I want no part of any of that at all.
I have money to never ever having to worry about bills ever again.
I live within my means but I live comfortably in a middle class lifestyle.
I am not a cheapskate. I am not a penny pincher. I have hobbies that I enjoy and will spend money where it needs to be spent.
I will use my funds to protect myself against those that will try to do harm to the ones I love.
Everything I have stated can be yours to achieve. IMHO the concept is easy but the follow through is hard. It's a long journey to success and it is never easy. But getting there. Just even being able to not live from pay check to pay check is the greatest feeling that can happen to you in this day and age.
That feeling would be the feeling of not having that oppressive pressure owing people something. And I'll tell you that is a great feeling to have and the most important goal to reach. Once you reach that goal and are financially stabilized. Everything else becomes easier.
Life does not go on when an entire generation of failures still fucking doing the same thing over and over and over again. I have stated for over 2 years here to save your money up by living within your means.
All I see is the same shit coming from ignorant people that don't see what I see. We share the same internet. We can get the same information on what is going on. So why are my net profits going up year, after year and those from Generation fail are in decline?
Because they are so conditioned to spend money on short term gains as well as trying to make a fast buck they effectively have no real financial foundation to live on. I see this all of the time when I talk to my lease holders knowing they can not afford another new car putting them in continual debt. Or the people in Wally world again all in nice fancy cars and knowing they are sure as hell not making that much money to buy that Lexus/BMW/Honda/etc. They put themselves into the door or revolving debt.
This failure mindset is also cross generational. This year I've seen my neighbors taking reverse mortgages, moving out of state, or going into bankruptcy. Some are in my Age Group (Gen Jones) but most of them are in Gen X.
Or...
Being too damned frugal that they are incredibly cheap. The type of cheapness that can kill you. I have friends who became diabetic because they were too cheap to go and see the doctor and change their "Cheetoes'" lifestyle. They just cut their lives short.
In 2006, that family was going to be a "millionaire" household. They were interviewed by some early FIRE movement people. When the great recession hit, they of course went backwards, but did not lose their household. But the ideals of how they were saving money was wrong and so was the FIRE movement in it's approach. So they penny pinched harder without making any investment and in the process damaged their bodies.
Being Penny Pinched, Pound Foolish is the other extreme of being a failure as well. They lost years of financial potential just because they were cheap. The eventually became a "millionaire" by the rising equality of their home and how they penny pinched, but by the time they reached their milestone I was already way, way above them. I use the financial opportunities offered and took advantage of the economic situations given to me.
This is the mindset of being poor. The Rich Plays to Win. The poor plays not to lose.
My "friends" have to work until they reach 65 or longer because of them being so damned cheap. I've left the workforce 16 years ago and made money ever since.
I wanted to share the other side of the coin of extreme frugalness. This form of Greed. The stereo type of a "Portuguese Cheapskate". And in my life I have seen people that I know and knew/ who are Portuguese and/or people fit that stereo type just fucking lose their lives. I was a workaholic but god damn I knew people that did 100+ hours a week so they can make more in their retirement only to drop dead as early as 46 years of age.
Yea after seeing people around me dropping like flies I just said "fuck it all... just not worth it anymore".
There is the Greed of Entitlement. For the Rich and for the poor.
There is the Greed of short gain profit which leaves you a bad foundation to start with.
And then there is the Greed of Frugality. When you are so damned cheap that you put your life and others in danger.
I see all of that above and again I want no part of any of that at all.
I have money to never ever having to worry about bills ever again.
I live within my means but I live comfortably in a middle class lifestyle.
I am not a cheapskate. I am not a penny pincher. I have hobbies that I enjoy and will spend money where it needs to be spent.
I will use my funds to protect myself against those that will try to do harm to the ones I love.
Everything I have stated can be yours to achieve. IMHO the concept is easy but the follow through is hard. It's a long journey to success and it is never easy. But getting there. Just even being able to not live from pay check to pay check is the greatest feeling that can happen to you in this day and age.
That feeling would be the feeling of not having that oppressive pressure owing people something. And I'll tell you that is a great feeling to have and the most important goal to reach. Once you reach that goal and are financially stabilized. Everything else becomes easier.
- Joined
- Jan 9, 2020
The Inflation was baked in 2018 and 2022 is not a surprise to me at all. Although I expected 2022 to happen in 2023.
But there isn't much point about worrying about things out of ones control. Sure, you can plan, but a plan is just a plan and I do not expect everyone to be able to save money - some just do not have the excess income to save so they will fair poorly.
Life goes on. There have been worse things than a recession. Maybe it will be a downturn that lasts a few years so what?
Capitalism has to go through these bowel movements. I'm lucky enough to make it through a tough time better than some but not fantastically either. I might get hit by a car tomorrow too.
- Joined
- Feb 18, 2019
By all means he is probably right. The markets are doing fine most of the time and predicting when the aren't or why they aren't is a rather difficult tasks. Doompreaching on the contrary is a rather popular activity. In my country at least 4 popular people were doing this for years of which 3 opened up their own funds. Well it did not work out so far. The worst performer started in April 2015 with a share price of 100,00 Euro.
Current price? 91 Euro. And no, the fund is not distributing.
So pessimism comes with opportunity costs. The economy has it's weak points, but is also more resilient than you might believe. The supply chains are often criticized but if you take into account that the spending behavior in the pandemic switched away from services into more physical goods - the supply chains did an incredible well job.
And if you are so sure about the decline, then put your money where your mouth it. I agree with Menotaur, but I also have a long-term stock portfolio.
Raising interest rates it one of the textbook examples to fight inflation. Borrowing gets more expensive, thus less consumption. Saving money gets more attractive, this less consumption. Less demand usually translates into lower prices if the supply isn't changed. The question is with which speed the rates are raised, but I am sure that the FED will have it's eyes on it.
Hippopatumus
kiwifarms.net
- Joined
- Jan 9, 2020
The 900 quadrillion dollar elephant in the room is that the Fed has no capability to address the problems with the dollar.
This is an inflationary debt spiral and there is no way out. The time of kicking the can down the road is over.
- Joined
- Feb 18, 2019
People were using similar graphs since the housing bubble of 2007/2008. With the same sentiment of "the time has come, it's over". Now we are in 2022 and so far it still keeps going. Now if those people had some skin in the game and actually acted on their belief by shorting the market, they would have lost their money.
If you sincerely belief in it, then act on it. If you are right, you win. If I am right I win. Simple as that.
Hippopatumus
kiwifarms.net
- Joined
- Jan 9, 2020
- Joined
- Feb 18, 2019
Hippopatumus
kiwifarms.net
- Joined
- Jan 9, 2020
I liquidated half my entire net worth into PMs.
a terminal posture
kiwifarms.net
- Joined
- Sep 19, 2019
If you are super-shy about losing money then I-bonds are paying 7% now and this will likely go up next month. You can only buy $10K per year though.
- Joined
- Dec 4, 2013
If you want to buy I Bonds I suggest doing so this week. You will lock in a 7.12% rate for the next six months, then get a 9.62% rate for the subsequent six months. If you wait until after May, you will get the 9.62% rate for six months, but the next rate has not been announced yet. You’ll still get that unannounced rate with an April purchase too. Check out Tipswatch for more detail on this. I have been buying the yearly max of I Bonds since 2017, I am a big fan of them.
![LinkinParkxNaruto[AMV]](http://uploads.kiwifarms.st/data/avatars/l/61/61177.jpg?1699571951){kind=avatar}
- Joined
- Jul 28, 2020
"oh no. I have to cut down on gold flakes for my sorbets, the west has fallen, society has collapsed, misery upon us"
Man. Reading first worlders doomposting is surreal.
Man. Reading first worlders doomposting is surreal.